leadership incorporated blog

June 2, 2009

Devastating Mistakes Businesses Make in This Economy: #2

Forgetting the impact exiting employees have on the well-being of the company. Businesses can’t afford NOT to transition exiting employees. Why? • Disgruntled ex-employees can do a lot of damage to current client relations and retention, not to mention undoing all the time and money spent on building a positive corporate image. • The cost of litigation will always far exceed the preventive investment in outplacement. • Productivity of the survivors is dramatically affected by an insensitive layoff. • In times like these, a business needs its retained employees to rebuild. An insensitive layoff can cause them to jump ship or undermine from within. • A relatively small investment in a smooth transition can prevent much greater costs.

Solution: Retain external offboarding support. In general, employees who are leaving do not want to have conversations about their futures with internal employees and will often not take advantage of internal programs.  While large outplacement firms may be better able to service large numbers of employees, smaller firms can deliver more personalized service for a significantly smaller investment.


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